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Best Places
Not To Pay Taxes #2
There
are places in this country where you will hear a large sucking
sound from the taxman, and places where the taxes are much
easier to tolerate. How does your state rank? Is it worth
moving? Taxes come in all shapes and sizes, and some we don't
think about very often. State and Federal income tax readily
come to mind. You're stuck with Federal income tax but state
taxes can be minimized or eliminated. Property taxes are
an ongoing burden that take their toll every year and can
add up to an obscene amount over the years as you try to enjoy
the fruit of your lifelong earnings. After retirement
your property taxes remain the same with there being very
little relief for senior citizens. State sales taxes can also
weigh heavily as your earnings better enable you to buy more
toys. Car registration is a frequently overlooked tax that
in some states will almost give you a heart attack.
Where is the tax picture the rosiest
and the gloomiest? From a regional standpoint you are better
off in the west or south, and out of luck in the northeast.
There certainly are exceptions that you have to coordinate
with your situation and it's not always easy to sort out the
differences. California and New York both get middle of the
road tax scores, but they are two different worlds when it
comes to car registration. A Benz or BMW can cost many thousands
of dollars to register in California where registration fees
are based on a car's value; with the annual fees only declining
roughly 10% per year. Ouch!!! $100 will get the same car registered
in New York where vehicle registration is based on vehicle
weight. New Hampshire is one of the states without a state
income tax, but the property tax is one of the highest in
the nation. Oregon has no sales tax yet you had better be
sitting down when you open your property tax bill.
Which are the states with the best
and worst overall tax scores? The best state hands down
is (surprise) Wyoming. Named by Bloomberg magazine as
the wealth friendliest state in America, and significantly
ahead of the #2 state of Nevada. Wyoming has no state income
tax, combined with low property and sales taxes. Rounding
out the list of states providing the best tax situations ranked
from the best score are Alaska, Florida, Louisiana, Tennessee,
Washington (state), Alabama, Arizona, Colorado, Indiana, Mississippi,
South Dakota, and Utah. The states you most want to leave
when you look at their tax ranking are Rhode Island and Montana,
followed closely by Washington DC, Maine, Minnesota, Nebraska,
New York, Oregon, Vermont and Wisconsin. Maybe you need to
do some more research into your own tax situation.
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